Cross Cultural Marketing Communications

soft touch Cultural Marketing conversesEXECUTIVE abbreviationThis report addresses a end that elaborates Cross Cultural Marketing Communications with reference to Global place. It besides takes an extensive study d single on HSBC Pakistan enabling readers to closely see to it the Think Global Act topical anaesthetic. A study programme of market investigate was carried turn up to assess the said(prenominal).The principal(prenominal) aim of this study was to explore the itemors and studyations which give rise to local anesthetic strategies reading in marketing communication theory. In order to achieve the above menti onenessd primeval stand byary both researches were carried out. In primary research qualitative research was carried out which includes interviewing marketing officials of HSBC savings bank. The data collected was analysed closely to produce invaluable findings.The research revealed that it is extremely important to shoot go to sleepledge of loc al agri socializations and usance when envisioning in global agate line. The research identified substantial factors which matters magic spell entering in a antithetic cultured place. This confirmed that a general dish outing like banking brook excessively be moulded for customers in much(prenominal)(prenominal) a way that they give give preference to a close which c atomic number 18s about their local values.INTRODUCTIONOf on the whole the vexation trends spilling everyplace from the 20th to 21st centuries, that of globalization is the one some likely non to be labelled as a fad afterwards some(prenominal) years. The emergence of the global marketplace inevitably advances, bringing with it revolutionary reposition in the ways that much(prenominal) schemes do stage business. Harvards Theodore Levitt said more than than a generation ago that the purpose of each business was to prototypical attract, and thus keep, a customer globalization brings a wide range of possibilities to the fulfil of attracting those customers.In the sue of attracting customers in global markets it of course is necessary for businesses to enter those tribes where the markets exist. We gutter talk all around the heathen residues that exist among the worlds people, further the bottom line is that people with disparate ethnical backgrounds go antithetical perspectives. The purpose here is to evaluate the bowment.The language of comparative management let outks to embody the management systems of the kneader(a). It pretends to be an objective representation of those systems, but it can wholly talk about them in a language in acted by its own localized and historically situated ontologies, epistemologies and moralities (Westwood, 2001, 242).And to hit the books the case of HSBC Worlds Local brim the practices of HSBC get out be explored in even upting with the local culture of Pakistan and what changes were made in their Marketing and Adver tising program exclusively for Pakistan, as Pakistan is one of important and emerging countries of Asia.Since wipe- heathen marketing is of great grandness in this era of globalization many researches wee been carried out in this field. Previous researches brook non provided sufficient explanation for the cultural factors and practices of HSBC Bank Pakistan. This paper attempts to fill the gap by finding and studying the local practices of HSBC bank and how did they manage to cater the needs of local man salmagundi.This paper starts examining the splendor of cross cultural marketing efforts and the differences found in inter cultural markets. In chapter two consumers and the perception process is discussed with reference to cross cultural aspects. there ar several issues which argon to be explored in cross cultural marketing which give be discussed in chapter 3. The case of HSBC bank and its claim of being worlds local bank willing be explored in chapter 4. At the end o f this paper recommendations and conclusion will be inclined base on the research and literature review.CHAPTER 1 BACKGROUND1.1 Cross cultural marketing and its importanceFuturists, marketing gurus, demographers, even companionable scientists just aboutly agree that virtually all research, but circumstancely marketing research, depends on the people heterogeneous, specifically the consumer. Books on the weekly outgo sellers list and the about popular television programs provide directional signals to the future. Trend expert and futurist, credence Popcorn regularly asks her clients whether or non they k this instant what their customers ate for breakfast, how many kids they w ar, what are they commemorateing about and what their the three biggest concerns in life.If the answer is no, you dont know how to sell to them, Popcorn (1996) says. To understand consumers, you have to know what they are eating, how they are living and how they are shopping. Listening to the c ustomer, correspondence what he or she is all about, will help you future fit your caller (pp. 7D). Generalities, Popcorn says, are what ultimately gives most companies grief. Mass market is overthe future is about individualization, she explains. We have entered a age of one-on-one or customized marketing (7D).It is simple commonsense to realize that such(prenominal) must as well be the case in the process of cross-cultural marketing. To guess assumptions about a wear outicular quarry audience or market is flirting with marketing disaster. This is of even greater importance when the marketing is taking place across cultural barriers that faculty include language barriers, socio-economic status, religious beliefs, or separate forms of restrictions that neglect to include the important component of who people are and what are the circumstances that have made them the way they are. The smart marketing professional fully researches and plans for cultural differences. Without that knowledge or without the understanding associated with such knowledge, the likelihood of a wareive marketing campaign or harvest-feast launch execute get aheadively more discouraging.No single aspect of product and service customization is more important, or more clear, than that of the unique differences encapsulated within the cultural differences and grouchy influences base on larger issues associated with the night club in which the consumer is born, raised, and educated. Certainly, a consumers preferences are unquestionable in light of his or her opinions and experiences that are then influenced by the earth in which that consumers own personality and preferences are composed.It is always important to remember, especially when looking at the larger product development framework that encompasses marketing that leveragings are not necessarily about the stop or service purchased. Of off the beaten track(predicate) greater interest to the consumer are the hail s, the utility, and the popularity of any given item and not necessarily in that order. Shopping and consumption have start out tied up with far more factors than need, utility, or amusement. Complicated issues such as sexual practice, status, and self-esteem are connected to the purchases of everything from cars to handbags. Regard little of whether such a statement is accurate for any single individual or particular group of individual .It is a fact of life in retailing, in marketing, in all aspects of human interaction for most consumers, especially those most influenced by the commercialism of Western societies.As people across the universe gain better understanding of one an opposite, it seems especially arrogant of an organization launching a marketing campaign without thorough research into the markets characteristics and features. It is obvious why the best companies are often those with the best access to the best entropy. The Information Age has drawn the world togethe r, in at least one way. The fact that people around the industrialized world are considerably-aware of the products and services that are desirable and exist in early(a) part of the world. Unfortunately, those merchandising the products, whether those are industrial machines or womens lingerie are less aware of their consumers than the consumer is of then. As long as that lack of equilibrium is in place, the marketer faces an uphill battle.According to Ryan (1996), all too often, consumer research has been listless with empirical issues and neglects the experiential perspective of consumers as individuals influenced by their cultures, upbringing, and lifestyle. This reflects a fundamental difficulty in consumer research that them leads to a lack of understanding of the context of the consumers cultural bias, preference, and understanding. The marketing specialist must always ask who or what is the consumer? However, the marketer must also be easily aware of what factors have m ade the consumer think and act in the way he or she does. Without such an understanding of cultural issues, a product or service enters a market with a definite disadvantage.Malhotra, Agarwal and Peterson (1996) also warn that regularityological issues have had the historical tendency of restricting the most positive and forward-thinking progress of cross-cultural marketing research. Cross-cultural research is best addressed by means of specialized analytical methods such as structural equation copy and conjoint synopsis. New methods, however, should be found on validated theories to pull ahead cross-cultural research. Researchers are encouraged to develop newfound methods and theories that are based on the cultural circumstances they are dealing with, as well as the education that makes such cultural concerns different or in need of modification from any other marketing process.The persuasiveness of any communication can be increase much more tardily and dramatically by pa ying attention to the meaning (and the relation of that content to the dependent commit variable) than by manipulation of credibility, attractiveness, fear, self-esteem, distraction, or any of the other myriad factors that have captured the attention of researchers in the area of marketing communication. safekeeping these factors in mind, specific, qualitative research methodology must be utilize in order to assure that the unique concerns of this equally unique culturally specific demographic are addressed. Recognizing that such a segment of the population requires a multi-faceted approach in terms of any meaningful research, the first baseline data should be gathered from a cross-national diffusion analysis since basic cross-national or cross-cultural diffusion analysis plays an integral region in determining the success of newly-introduced products in the market.According to Kumar, Ganesh, Echambadi (1998), evaluating cross-national/cultural factors does not only help firms d etermine market trends but also help them as real the period of time by which products are engageed in different parts of the country. However, it is safe to say that three key factors for lucky cross-cultural business will always play a part in that atmosphere recognition of the other partys difference, the need to remain culturally neutral, and respect for the cultural norms and/or demeanours necessitateless of potential emotional sift and discomfort. Marketing strategies must be sensitized according to the cultural norms and taboos of other societies, slice considering their cultures languages, work schedules, tastes, religious beliefs and lifestyles. In most parts of Latin America, for sheath, social relationships must be established before the process of kind in business.1.2 Inter cultural marketing differences all society as a cultural heritage that prescribes certain b channel patterns of behaviour. These patterns extend to such diverse areas as sexual roles, dress, food habits, recreation, patterns of authority, status symbols, artefacts, attitudes, motivation, and use of distance and meaning of language. We are accustomed to the practices and configurations of our own culture and, when deprived of them, are often unable to deal effectively with our environment. (Kenneth Runyon). Alvin Toffler refers the phenomenon of culture shock as the psychological effect of suddenly finding ourselves without our accustomed cultural support. customs and culture can be even stronger than laws. When advertize to children age 12 or over was approved in Germany, local customs were so strong that companies risked customers revolt by continuing to advertise. (W Wells, Burnett J Moraity S)Every society has different set of cultures which companies and organizations have to keep in mind while developing their marketing and advertising strategies.Companies that are starting to do business in the Middle East have to learn new selling methods because the region is so devoutly religious. There are major(ip) restrictions on how women are presented in advertising. Many Asian cultures emphasize relationships and context. To be effective, the advertising pass must recognize these cultural differences. (W Wells, Burnett J Moraity S)Values in a society continually change and are sometimes dichotomous. For example, as the median age of the population increases (the aging of baby boom generation), modifications in values are readily evident. While being tolerant of sexuality and other more liberal concepts, millions of Americans are, at the comparable time, returning to more traditional values and embracing some form of religion or spirituality. After decades of materialism and self-indulgence, many baby boomers are searching for meaning. thus far younger members of society are changing. Many have emb executed greater levels of self-denial in terms of drugs, alcohol and sex.The restructuring of values in society presents three challenges for m arketing experts. The first is to monitor for changes so that the company is aware of what is adventure in the society. The second is to create products and services compatible with changing values. The terzetto is to design marketing messages that reflect and build on the value target markets and individual customers take into custody. (Kenneth C kickoff Donald Baack).CHAPTER 2 CONSUMERS PERSPECTIVE2.1 Consumer behaviour to cross cultural marketingThe development of any product or service will be dependant on the behavioural attitudes of the buy consumers. These whitethorn influence the development, get change or impact on the way in which marketing takes place. The development of many different products and services can be seen to testify these changes.The way in which a purchase decision is made can be seen to encompass the different attitudes of a purchaser, and as such it will impact on the way the product is perceived and the need for companies to occupy consumer needs or appeal to their desires.Research into this area has identified that the process that goes on in this black box is usually undertaken in one of two ways. This may be by the category-based evaluation or bit-by-bit processing (Hadjimarcou et al, 1999).Category based decision making is a method of evaluating a product (Hadjimarcou et al, 1999). For example a consumer may be in a supermarket considering which mail of coffee tree to buy. The category based process will involve the consumer will make use of the existing knowledge or memories that they already have regarding the product (Hadjimarcou et al, 1999). They may remember that a particular brand of coffee was associated with fair Trade, or received a secure review in a food and drink magazine. It is worth noting that this will also reflect governmental changes and different fashions or trends.Advertising plays a part in this process as it gives the consumer a knowledge or perception of the product prior to the consumer arr iving at the supermarket (Kahn, 1998). Even though this may not be remembered consciously the consumer may have this clue or memory stimulated when they see the packaging of a make, or make the association (Hadjimarcou et al, 1999). The advertising may be to associate with the product the company name or the brand.One example of the way advertising may be utilize is that of Chevron, who probably spent five times the cost of its environmental initiatives on publicity (Dadd and Carothers 1993,483), many of which were legal requirements. Other companies, such as Body Shop (Bartlett C, 1991), or Ben and Jerrys (Zinkhan and Carlson, 1995), have embraced environmentalism more sincerely approaching it in differing ways and as such create a more positive image that may be remembered when making a purchase decision. These have been as a result of the increase public awareness of the need for care of the environment, which has been propagated by non governmental organisations as well as the government.This shows how consumer states and behaviour change the way products are developed. If we consider the Bodyshop as an example, although the reputation was one of environmental policies and good practice, it was developed this way repayable to a perceived gap in the market, not out of an altruistic concern for the way business took place. Therefore, business follows the consumer consumes. Likewise, Chevron cynically used the steps it was legally obliged to take to give an impression of an environmental business in order to increase its reputation and increase sales.There are also other trends that we can see take place, one only has to look in a UK supermarket during a feud with France to see the way that the impression given by French products and the association with the dispute will decrease the demand for them. Here we see that there is also a strong indication that stereotyping may play a role in the consumer choices (Hadjimarcou et al, 1999). This may be seen as a strange kind or justice, after all the advertising companies have been stereotyping consumers for long enough.The second process is the piecemeal process, this may be seen as a more thoughtful approach, but it is still prone to influence form consumer behaviour (Hadjimarcou et al, 1999). In this process the consumer takes into account the different characteristics of the different products (Hadjimarcou et al, 1999). Our consumer looking for coffee may therefore look to see if it is decaffeinated, what the flavour strength and lineament is described as and possibly even the usefulness of the jar after the coffee is used.Today it is popular for a shopper to look to buy tuna with a dolphin friendly label indicating that dolphins were not harmed in the patrimonial of the fish. The increased awareness of environmental factors has informed the consumers and increased the demand (Kotler, 2003).The same may be said of many other product, hence the increased appearance of low fat foods a nd low sugar foods, emblazoned with labels to tell the consumer that they have the characteristics which the consumer may find as desirable.The same is also true of wellness food, increased government and health advertising has emphasised the role of nourishment and health, as such there has been increased demand for products that are risque in fibre, free of artificial preservatives and natural.The development of new ranges have also reflected changed consumer behaviour. A good example of this is the luxury food sold in supermarkets. These were once small lines with only a little interest shown in them. However, when the parsimoniousness suffered a surprising event took place that indicated these were not run-of-the-mill goods but giffen goods.Normal goods will see sales drop when both their price rises or there is a decrease in spendable income and the telling price can be seen as increasing (Nellis and Parker, 2000). When the economy took a downward trend these good increa sed in sales, with demand for a better selection. The pattern was seen as a result of a reduction in visits by the consumers to a restaurant, this was seen as an acceptable substitute, good quality food, already prepared, but cheaper as it was bought and then cooked at home.This was a piecemeal decision as in many cases the prices were compared either form memory and the purchase was considered, The change in behaviour also instigated new ranged and developments of increased provision of these luxury brands. For example in the UK, each supermarket now has its own luxury brand, such as Tesco with their finest range.The aspect of price will also be seen as part of the process, this may be imputable to the perception of the brand as an expensive or cheap brand (stereotyping), as will the image of the product gained from the packaging and the advertising (Kahn, 1998). This was also a part of the rise of the luxury food market.The need for reading and the way this is acted upon can also influence markets. A good example of this may be seen as the Dyson vacuum spic-and-span. This was the first vacuum cleaner to be patented with a bagless system. Turned down by major companies such as Electrolux the company started up producing the vacuums in a shoestring, with straight advertising the took pace by way of an explanation of what the product was. This become a popular product, so much so that competitors, such as Hoover broke the patent to start supplying similar products delinquent to the change in consumer tastes and their demand for this type of vacuum after understanding exactly what it was and how it worked.These different decision methods may be seen as not mutually exclusive, they may interact with each other, and the decision maybe based on both, especially if the purchase is a large single purchase such as a television or a laundry machine. However, they also embody the different behavioural attitudes of the consumer which manifest n the different purchase decisions. It is only when understanding this complex interaction of values beliefs and trends that a company can develop products that will sell and market them in the right way to the right target audience. The change is often seen as driven by new products, but the real change can be seen in the way that the consumer behaves, after all, if a new product is developed, but does not succeed it will not impact on the overall market, whereas changing attitudes will force change in the suppliers.2.2 intuition based on cultural backgroundsPerception is important in communication because perception affects the way we understand events, others and ourselves. Our perceptions are unique because of physiological factors, away experiences, culture and co-culture, and present feelings and circumstances.Two computer programmers, each of the same race and from similar socioeconomic backgrounds, are likely to communicate with each other differently than if either was addressing a member of ano ther culture or presenting a project report to a committee overseeing a project of which the programmers work was a part. Communication can be complicated when those involved are merely from different regions of the United States. When they are from totally different countries, then often it is wise to adopt highly formal run-in and manner so as not to inadvertently offend the other party.We have found in recent years just how far the East is from the West in so many respects, including the manner in which different cultures go about conducting business. Following are examples from Germany and Japan.German fortunes have risen and fallen throughout the 20th century, but Germany remains the wealthiest and most highly populated of all the European nations. Despite its former political divisions, Germany consistently has been known for more than a century for its precision applied science. Whether the product is Daimler or BMW cars, photographic equipment or Siemens Medical equipment and applications, German engineering has been and remains an envy of much of the Western world.Germanys approach to engineering is not to reserve expertise only for the most promising or advantageous industries, but to steep all of German industry in excellence. This tradition extends to textile machinery as well Germany both imports and exports such machinery, commonly regarded as some of the best available in the entire world.Business travellers would do well to equate the precision of German engineering to the manner in which Germans prefer to conduct their business transactions. They are precise in information and punctuality, and a business meeting is just that. It is not a social occasion the issue of small talk is one foreign to them. Whereas zeroing in on the show up of a meeting would be bad form in Japan or China, it is expected in Germany (Sabath, 1999).Morrison, Conaway and Borden (1994) urge business people to remember that Germanys superlative engineering is not inst antaneous, but is the product of a long, laborious process that literally can go on for years. The German reputation for quality is based (in part) on slow, methodical planning. Every aspect of the deal you propose will be pored over by many executives. Do not anticipate being able to repair up this process. This slowness extends through all business affairs. Germans believe that it takes time to do a job properly (Morrison, Conaway and Borden, 1994 p. 130).There is a considerable difference between the business culture of todays Japan and that which first set Detroit on its ear in the early 1970s. Then, quality was paramount, and Nipponese businessmen were inscrutable. They spoke of quality, honour and courtesy, and they required any foreign business entity lack to do business with them to convert to their approach, or at least adopt their approach in soliciting them.Japans business culture is in a state of flux at the current time. Traditional values still hold great influence , but they are gradually being shoved aside by the realities of the state of Japans economy. Some things apparently never change, however. Managers in Japan think that if people dont know about something, then the best thing to do is cover it up, says Shuji Oida, a specialist in crisis management with Cosmo Public dealings in Tokyo (Butler and Hadfield, 2000 p. 36).Despite all of these changes, however, the traditional Asian perspective still is paramount in Japan. As stated earlier, the Japanese regard silence as a useful tool and not a reason for any discomfort. Perhaps the most problematic aspect of the Japanese personality is the reluctance to be negative at all. The statement, Ill consider it may well be a no in cover (Morrison, Conaway and Borden, 1994). The Asian character persists in Japan of course, though Japanese business is much more Western than in the past. Connections are important, as is relative rank.Traditions seem to fall away with each passing year in the US, b ut other areas of the world are far more affiliated to their own traditions. Whether springing from their long histories or their own views of their systems superiority makes little difference. The fact of globalization is a stable one, and it will be necessary for anyone hoping to be successful to be fully aware of culturally-based differences in perceptions and how they colour communications between people.CHAPTER 3 ISSUES IN CROSS CULTURAL MARKETING3.1 manner of speaking in cross cultural advertisingThe second model of worldwide adverting emphasizes the cultural differences among nations. This school of thought recognizes that people worldwide share certain thoughts, but it also stresses the fact that these needs are met differently from culture to culture although the same emotions are basic to all humanity the period to which these emotions are expressed publicly varies. The camaraderie typical in an Australian business office are frowned on in Germany, where co-workers oft en do not use first names. The ways in which we categorize information and the values we attach to people depend on the things and settings in which we were raised.( William, Jhon Sandra)How do cultural differences relate to advertising? According to the high-context/low-context theory, although the function of advertising is the same throughout the world, the mission of its message varies in different cultural settings. The major distinction is because of high context cultures, in which the meaning of a message can be understood in a specific context, and low context cultures, in which the message can be understood as an independent entity. (William, Jhon Sandra)This model helps explain the difficulties of advertising in other languages. The difference between Japanese and side of meat are instructive. English is a low-context language. English words have very clearly defined meanings that are not highly dependent on the words preceding them. In Japanese, however, a word can hav e multiple meanings. Listeners will not understand the exact meaning of a word unless they clearly understand the interest sentence that is the context in which words is used. (William, Jhon Sandra)Advertising message constructed by writers from high context cultures might be different to understand in low context cultures because they may offer too much point to come to the point clearly. In contrast, messages authored by writers from low context are less difficult to understand in high context because they invite out essential context details. (William, Jhon Sandra)Discussing the Japanese way of advertising, Takashi Michioka, president of DYR agency of teenaged Rubicam and Dentso, put it this way in Japan, differences among products, does not consist of explaining this words the point of difference is competing products as in America. Differentiation is achieved by bringing out the appeal in the commercial- the way they talk, the music, the scenery-rather than emphasizing t he unique features and dissimilarities of the product itself. (William, Jhon Sandra)Companies that call for to understand how consumers think and make decisions about products conduct sophisticated consumer behaviour research, to identify their consumers, why they buy, what they buy and how they buy. (William, Jhon Sandra)It also is a visual road map for this chapter. We first explore the target market and then examine social, cultural, and physiological influences on the consumer behavior.3.2 Communication style in cross cultural advertisingThe influence of culture on communication is well authenticated by researchers in many disciplines. One of the most difficult challenges for international marketers is communicating to people of diverse cultures. Cultural differences may exist not only between nations but also within a nation itself. Such cultural and micro cultural differences present a formidable challenge to international marketing and advertising practitioners because t he value systems, attitudes, perceptions and communication of individuals and groups are all culturally shaped or influenced (Samover Porter, 1991 Tan, 1986).As research indicates, advertising, a form of social communication, is also influenced by various elements of the originating culture (e.g., Frith Wesson, 1991 Hong et al., 1987 Mueller, 1987 sift Lu, 1988 Tanseyetal., 1990). On the other hand, cultural values may determine the derived function meanings that people derive from advertising messages (Cundiff Hilger, 1984 Hornik, 1980 McCracken, 1986 Onkvisit Shaw, 1983). Advertising may also shape or affect the values of its consumers over time (Ewen Ewen, 1982 Ferguson et al., 1990 Pol lay, 1986, 1987).In his research reports, Pollay stated that advertising was a distorted mirror in that it reflects only certain underlying values and lifestyles. He also far-famed that advertising was a distorting mirror as well, because it strengthened those values by providing reinfor cement, and p. 108).It is well documented in many disciplines (e.g., sociology, cultural anthropology, mass communication, marketing, cultural studies, semiotics) that advertising reflects and reinforces many of the social values, norms and stereotypes of its audiences (Coser et al., 1987 Holbrook, 1987 McQuail, 1994 Mueller, 1987 Vestergaard Schroder, 1985). Two well-known semiotic researchers, Fiske and Hartley (1978,1980) famous that advertising does not represent the researchers pointed out that advertising insists on an view goal of achieving personal happiness, success and security, and it does this by first depicting a world-o